Negotiating a property sale is considered one of the most intimidating aspects of the home buying process. Experience and familiarity of local markets can give REALTORS® a clear advantage to represent your best interest.
I will walk you through the process
While the buyer(s) won’t be there in person, their REALTOR® might present the offer in person. Your eyes will be immediately drawn to the price. I will provide advice before any judgments are made. There is usually a time limit in order to respond. The buyer’s agent won’t expect an answer right away. Most offers are presented by email to me and I will meet with you to review it and make a decision on the next steps.
Responding to an offer
An offer will almost always have conditions attached to it, such as a home inspection or financing. Not all offers are equal in terms of quality or probability that the sale will complete. There are many factors to weigh when considering the offer to purchase.
There are three basic results after a review of the offer:
1. You can accept the offer
You got the price you were hoping for, maybe even more. The closing date looks good and there are no conditions. If you accept, the offer become binding – it’s a contractual obligation to sell your home according to the terms in the contract.
2. You can reject the offer
The price or conditions might be unsuitable or not reasonable. In this case, the offer is rejected or not formally acknowledged. I will contact the buyer’s agent to explain how an offer might be written that would receive a response.
3. You can “sign back” or provide a counter offer
A counter offer involves altering the original offer so that terms and conditions meet your approval. Price is the main reason for a counter-offer but there are other reasons why:
- You want a bigger deposit to show good faith
- You want to change the closing date
- There may be some undesirable conditions on the offer (buyer to obtain financing, approval to assume mortgage, sales of purchaser’s home, property inspection).
Successful negotiation is one that leaves both you and the buyer feeling satisfied with the outcome. I will help you every step of the way.
Summary
- An offer is the first step in the sale process
- Conditions attached to the offer are negotiable
- Not all offers to purchase are viable – let’s choose the best one together
- REALTORS® are experienced negotiators and will work co-operatively so both parties are happy with the results
